A significant expansion is underway for a major real estate investment trust, following a recent green light from regulators. The approval unlocks a substantial P16.2-billion infusion of prime assets, poised to reshape the company’s portfolio and benefit investors.
The core of this expansion involves acquiring nine prestigious office buildings, strategically located in the bustling McKinley Hill area of Taguig. These Grade A properties boast a combined leasable area of approximately 165,500 square meters, representing a substantial addition to the company’s holdings.
This acquisition will immediately boost the company’s total leasable area by roughly 34%, bringing the total to around 647,000 square meters. Remarkably, the benefits of these new assets will be felt retroactively, starting from January 1st, offering an immediate return for investors.
The transaction was carefully structured as a property-for-share swap, valued at P16.03 billion, with a small cash component of P187.5 million. This approach was designed to minimize dilution for existing shareholders while maximizing growth potential.
The share swap was executed at a premium, reflecting confidence in the company’s future prospects. This strategic move provides ample opportunity for increased dividends per share, rewarding long-term investors.
According to the company’s chairman, this approval signifies a pivotal moment in the company’s growth trajectory. It represents a key step in scaling operations while maintaining a commitment to disciplined and profitable expansion.
The newly acquired properties are already performing exceptionally well, boasting a 97% occupancy rate at the close of 2025. A significant portion – over 80% – of the leasable space is occupied by global capability centers, demonstrating strong demand and stability.
Looking ahead, the company is already preparing for its next phase of growth, dubbed “Wave 5.” This upcoming infusion will mark a strategic diversification into the retail sector, adding several mall assets to the portfolio in the latter half of the year.
“Wave 5” is projected to increase the overall portfolio to approximately 750,000 square meters, with an ambitious long-term goal of reaching one million square meters of leasable space by 2027. This expansion is fueled by a robust pipeline of income-generating properties.
The company benefits from a strong foundation provided by its parent company’s extensive portfolio and the broader resources of its affiliated group, ensuring a sustainable and dynamic growth strategy. Despite the positive news, shares experienced a slight dip on Thursday, closing at P13.50 per share.
